ANNOUNCEMENT 06 Jul 2016
On 6 July 2016, the French Prime Minister Manuel Valls announced in a speech at the Europlace Financial Forum a number of measures intended to increase foreign investments in France.
However, the underlying law (Finance law 2017, number 2016-1917) only came into force on 1 January 2017 after a Constitutional Court decision published on 29 December 2016.
NUMBER OF INTERVENTIONS
Press release by French government on the speech
Finance law 2017, number 2016-1917 (in French)
Article 71 of the Finance Law 2017 introduced an extension of the "impatriate" regime from five to eight years. The regime provides third-party nationals moving to France for business purposes with numerous tax incentives, such as income tax reliefs for the first five years of their stay.
At the beginning of his speech, Valls hinted at the prospect of attracting investments from the UK to France following the Brexit vote. He mentioned that "Our attendance today is also marked by a very particular context: the British people's decision to leave the European Union. (...) This decision (…) has sent shock waves across the European community at large as well as, in a very specific way, among many companies located in the UK. (...) Today, we are offering solutions to companies looking for answers to their questions so that they can anticipate and plan for the future". Similarly, according to the French law firm Fidal, these incentives are meant to lure top executives from the United Kingdom following the Brexit vote. Hence, the United Kingdom was selected as an affected trading partner.